7. Assignment of Proceeding

President Michael R. Peevey is the assigned Commissioner and Dorothy J. Duda is the assigned ALJ for this portion of this proceeding.

Findings of Fact

1. In D.06-08-028, the Commission required that all solar installations receiving incentives through the CSI must have some form of communication reporting, or PMRS.

2. D.06-08-028 required that the PMRS provider be an "independent" entity, i.e., unaffiliated with the incentive recipient, or any solar manufacturer or installer.

3. CSI incentives provided under the PBI structure are paid based on actual system output, whereas incentives paid under the EPBB structure are based on estimated system performance.

4. The performance of systems installed with either PBI or EPBB incentives will be reviewed as part of the program evaluation component of the overall CSI program, which the Commission will establish at a later date.

5. A key goal of the CSI program is market transformation to make solar products cost-effective.

6. By prohibiting solar manufactures and installers from offering PMRS, the independence requirement in D.06-08-028 limits competition for the provision of these services, and may restrict innovation and increase costs of PMRS.

7. The definition of "affiliated entities" in D.06-08-028 was unclear.

8. The Commission does not require that metering of water, electricity or gas service be provided by an independent entity.

9. WREGIS has a meter accuracy requirement, but not a meter independence requirement.

10. A qualification process for PDPs, along with PDP protocols and standards, can ensure accuracy and integrity of solar performance data.

11. The PDP proposal filed in this proceeding needs further development on technical and customer support, performance exemptions, the appeal process, and other issues.

Conclusions of Law

1. D.06-08-028 should be modified to eliminate the requirement that PMRS providers be independent or unaffiliated with program participants, solar manufacturers or solar installers.

2. Opening the PMRS market to a larger pool of providers supports the Commission's goal of lowering solar costs and transforming the solar market.

3. It is reasonable to eliminate the independence requirement for the provision of PMRS as established in D.06-08-028 for PBI program participants and replace it with a PDP qualification process, standards, and protocols.

4. We should establish differing PMRS requirements depending on whether the PMRS information goes to the Program Administrator to calculate PBI payments, or to the EPBB customer solely to monitor system output.

5. All systems that receive CSI incentives through PBI payments should be required to take service from a PMRS provider for the data stream to the Program Administrator that serves as the basis for PBI payments, that meets the PDP qualifications, standards, and protocols, to be established following an Energy Division workshop and subsequent advice letter process.

6. Until PDP standards and protocols are reviewed and established through an Energy Division workshop and advice letter process, solar system owners seeking PBI payments should subscribe to PMRS from providers that meet the interim protocols in Appendix A of this order.

7. Energy Division may approve minor, non-substantive changes to the contact information or data submission timing in these interim protocols, with revisions circulated to the service list.

8. All systems that receive CSI incentives through an EPBB payment shall take PMRS service, subject to the cost caps in D.06-08-028, as modified by D.07-07-028, but the PMRS provider does not need to be independent or meet the PDP qualifications, as long as the PMRS provider is listed on the CEC eligible PMRS provider list.

9. The changes in this decision should apply to all systems participating in the CSI program.

10. CSI program applicants who meet the PDP requirements set forth in this order, and all other program rules as set forth in the CSI Handbook, should receive their incentive payments without delay.

11. Conforming changes should be made to the California Solar Handbook.

ORDER

IT IS ORDERED that:

1. The March 5, 2007 petition for modification filed by the Joint Solar Parties, Pacific Gas and Electric Company (PG&E), the San Diego Regional Energy Office (SDREO), and SMA America is granted as it pertains to independent performance monitoring and reporting as set forth in this decision.

2. Decision (D.) 06-08-028 is modified as follows to remove the requirement that performance data collection and reporting shall be provided by an independent entity (deleted text in strikethrough):

Delete Ordering Paragraph 17: Program administrators shall ensure the entity responsible for performance monitoring and reporting is not affiliated with the incentive recipient, or any solar manufacturer or installer.

Delete Conclusion of Law 43: The entity administering solar performance reporting should be an independent party, either existing administrators or a third party not affiliated with solar manufacturers, installers or owners.

3. Effective with this order, systems receiving performance-based incentives (PBI) through the California Solar Initiative (CSI), are required to subscribe to performance monitoring and reporting service (PMRS) for the data stream to the Program Administrator from a provider that meets the performance data provider (PDP) requirements set forth in Appendix A of this order, until the Commission adopts final PDP requirements by advice letter, in compliance with this order. The program administrators may request, in writing, that Energy Division approve minor, non-substantive revisions to the contact information or data submission timing in these interim rules. Any such requests shall be copied to the service list of this proceeding. Energy Division will notify the program administrator if the change is allowed and direct the administrator to provide an updated copy of the interim PDP protocols to the service list.

4. Effective with this order, systems receiving the Expected Performance Based Buydown incentives through CSI are required to subscribe to PMRS, as described in this order, without an independence or PDP requirement.

5. Within 45 days of this order, Energy Division shall convene a workshop to discuss improvements and refinements to the proposal for PDP qualification, standards, and protocols. Following the workshop, Energy Division shall file a workshop report with recommendations for changes to the PDP proposal and shall direct either PG&E, Southern California Edison Company (SCE), or San Diego Gas & Electric Company (SDG&E) to file, within 30 days of the workshop report, an advice letter on behalf of the CSI Program Administrators with a revised PDP qualification process, standards and protocols and conforming CSI Handbook changes. The assigned Administrative Law Judge has the authority to modify this schedule and Energy Division may refine the workshop agenda, as set forth in this decision.

6. Following Energy Division action on the advice letter described above, systems receiving CSI incentives shall comply with the PMRS requirements established by Energy Division through the advice letter process in order to receive their incentive payment.

7. PG&E, SCE, and SDG&E and its Program Administrator, the California Center for Sustainable Energy, shall cooperate in implementing these changes.

8. The changes adopted herein will apply to all systems participating or seeking incentives under the CSI program.

9. This proceeding shall remain open to address additional issues identified in the scoping memo.

This order is effective today.

Dated January 31, 2008, at San Francisco, California.

MICHAEL R. PEEVEY

                     President

DIAN M. GRUENEICH

JOHN A. BOHN

RACHELLE B. CHONG

TIMOTHY ALAN SIMON

Commissioners

INTERIM CSI PBI DATA TRANSFER RULES

Interim Criterion for Submitting Production Data

· The Performance Data Provider (PDP) must be an eligible PMRS provider listed on the CEC's website: ( http://www.consumerenergycenter.org/erprebate/monitors+rsp.html)

· The PDP must receive authorization from the Program Administrator prior to submitting Performance Based Incentive (PBI) Data Reports for customer incentive payments.

· The customer is responsible for contracting with an approved PDP. The PDP will provide actual production data from the customer-owned generation to the Program Administrator for determining monthly PBI payments. Any delay in delivery of the data report to the Program Administrator may result in the incentive payment being delayed.

· The Program Administrator will not pay incentives based on estimated data supplied by the PDP, nor will the Program Administrator estimate incentive payments in the absence of actual performance data.

· The PDP must submit performance data using the attached CSI PBI Data Report Worksheet.

Program Administrator Data Submission Requirements and Instructions for Completing the Spreadsheet:

PG&E Monthly PBI Data Submission

The PDP must provide monthly system performance data to PG&E in the approved PBI Data Report Excel spreadsheet format. The spreadsheet should be e-mailed to SolarPBI@pge.com per the established reporting cycle each month. PG&E will validate the resulting PBI payment to ensure it is within an expected range before the payment is issued.

The PDP is responsible for immediately notifying PG&E if it is unable to provide the data for any reason. PG&E will only issue PBI payments based on actual performance data.

CCSE Monthly PBI Data Submission

The PDP is responsible for providing monthly system performance data to CCSE via CCSE's approved Excel PBI Data Report spreadsheet via e-mail per the PA established payment cycle. CCSE has set up two distinct e-mail addresses for the separate Payment Cycles:

· pbi1@energycenter.org for Cycle 1

o 12:00AM on the 1st of the month through the 12:00AM on the 1st of the following month

· pbi2@energycenter.org for Cycle 2

o 12:00AM on the 16th of the month through the 12:00AM on the16th of the following month

CCSE has specific personnel managing each Payment Cycle and any issues with a specific project or payment can be addressed by the CCSE PBI Payment Team. Should a PDP be unable to transmit a data report due to communication issues, CCSE will pay out during the following cycle (double pay) contingent upon receipt of the missing data.

The PDP is responsible for immediately notifying CCSE of any issues they are/will have with transmitting the PBI Data Report. CCSE will only pay incentives on actual performance data.

SCE Monthly PBI Data Submission

A customer's PBI report period begins on midnight of the 1st or 15th day of the month, whichever is earliest, following the date of the incentive claim approval letter. For example, if the date on the incentive claim approval letter is June 7, 2007, the start date of the new PBI data reporting period will be midnight, June 15, 2007. If the date on the final approval letter is June 23, 2007, the start date would be midnight, July 1, 2007.

The PBI data reporting period will be on the date described above and will end on the same date and time of the following month. For the first example, the PBI reporting period would begin on midnight, June 15, 2007 and end on midnight, July 15, 2007.

SCE contact information:

Website: www.sce.com/rebatesandsavings/CaliforniaSolarInitiative/

E-mail Address: csi@sce.com

Contact Person: Program Manager, California Solar Initiative Program

Telephone: (800) 799-4177

Fax: (626) 633-3402

Mailing Address:

Southern California Edison

6042A Irwindale Avenue

Irwindale, CA 91702

Interim CSI Data Reporting Worksheet Instructions

During this interim period, the PDP must provide all PBI data reports via e-mail to the respective Program Administrator. The appropriate Program Administrator contact information is listed at the end of these instructions. A response e-mail will be sent by the Program Administrator to confirm receipt of the PBI data report.

A PBI data report must be received by the appropriate Program Administrator for a project no later than close of business (COB) five days following the end of the reporting period. This equates to COB the fifth or twentieth of each month depending on the customers PBI reporting period. As per Section 4.4.5.2 of the CSI Handbook, the Program Administrator has 30 days from the end of the PBI data report period to provide payment.

The yellow fields in the CSI PBI Data Reporting Worksheet require input by the PDP as described below:

A) Project Info - this section identifies all the project details for the Program Administrator to confirm which project and month to which production data and payment will be assigned. It also includes the contact information of the PDP in the event the Program Administrator identifies a problem with the PBI data report.

i. Data Report Number - this is the effective report number out of the scheduled 60 payments.

ii. Primary/Secondary Incentive Level - for projects that are approved to receive incentives from two incentive levels OR projects that are prorated due to size or project cost restrictions, the splits established by the Program Administrator and reported on the incentive claim approval letter will be entered here.

B) Production Report - this section contains all the pertinent reporting information for the PBI reporting period.

i. Meter Blocks - The blocks numbered from one to four represent the fields available for each meter of the specified project. Most projects will only fill out the first block corresponding to a single performance meter onsite. If the specified Project ID has more than one performance meter associated with it, use the additional blocks as needed. Please contact your Program Administrator if more than four blocks are needed.

ii. Utility and Meter Information - Input the utility account number that corresponds to the approved PBI meter. Input the utility assigned PBI meter number. If no utility PBI meter number was provided, input the meter's serial number and preface the serial number with an "SN". For example, SN013257.

iii. Start/End Read Cumulative kWh - These numbers represent the cumulative count of the total kWh production of the generation system. This is NOT the 15-min kWh production read. The End Read of each PBI data report should be the same as the Start Read of the following period.

iv. Optional 15-minute Data Report - the second tab on the spreadsheet is available for PDPs to provide the full log of 15-min interval kWh production data to the Program Administrator if possible. The Program Administrator will require PDPs to submit all historical 15-minute interval data that was not reported during the interim PBI payment process period using the EDI 867 protocol. Therefore, PDPs are strongly encouraged to provide this data during the interim period.

1. 15-minute kWh Read - this data must be actual production including any meter multipliers. Do not provide raw data that has been processed without applicable meter multipliers.

2. Timestamp - each 15-minute read must also be accompanied by a corresponding date and timestamp, each in separate columns adjacent to the data read. The date stamp should be in the DD/MM/YYYY format and the timestamp is to be in the 24 hour format HH:MM:SS.

(END OF APPENDIX A)